Impact of Liquidity Management on Return on Equity of Selected Deposit Money Banks in Nigeria (2004 -2017)

Dr. Abolade Francis Akintola, Dr. Samuel Adebayo Olaoye and Dr. Pius Okafor Onichabor
Additional contact information
Dr. Abolade Francis Akintola: Department of Finance, Babcock University, Ilishan – Remo Ogun state, Nigeria
Dr. Samuel Adebayo Olaoye: Department of Accounting, Babcock University, Ilishan – Remo, Ogun State, Nigeria.
Dr. Pius Okafor Onichabor: DDepartment of Accounting & Finance, Mountain Top University, Ibafo,Ogun State , Nigeria.

International Journal of Research and Innovation in Applied Science, 2021, vol. 6, issue 1, 27-33

Abstract: The study investigated liquidity management and return on equity of selected deposit money banks in Nigeria from 2004 to 2017. Data obtained for the study were obtained from secondary source while eleven (11) deposit money banks were selected for the study. Data gathered were analyzed using ordinary least square (OLS) to examine the magnitude and significance of the relationship and the research variables. Result of the regression analysis shows that both current ratio (CU) and operating cashflow (OCR) have positive effect on return on equity of selected deposit money banks in Nigeria. While both debt ratio (DBR) and loan deposit ratio (LDR) have negative effect. It can therefore be concluded that liquidity management has insignificant effect on return of equity of deposit money banks in Nigeria. The study therefore recommends stringent penalty for any bank who fails to meet minimum liquidity ratio sets by the regulatory authorities.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijrias/ ... -6-issue-1/27-33.pdf (application/pdf)
https://www.rsisinternational.org/journals/ijrias/ ... -issue-01/27-33.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjf:journl:v:6:y:2021:i:1:p:27-33

Access Statistics for this article

International Journal of Research and Innovation in Applied Science is currently edited by Dr. Renu Malsaria

More articles in International Journal of Research and Innovation in Applied Science from International Journal of Research and Innovation in Applied Science (IJRIAS)
Bibliographic data for series maintained by Dr. Renu Malsaria ().